Pennsylvania Continues to Protect Life Insurance Beneficiaries in Settlement with AIG
HARRISBURG, Pa., Oct. 22, 2012 /PRNewswire-USNewswire/ -- The Pennsylvania Insurance Department today announced that it has reached its fourth multi-state settlement agreement in connection with a series of investigations involving the claim settlement practices of life insurance companies.
"Today, American International Group has joined the ranks of the insurance companies that have agreed to step up their business practices by implementing more robust searches to locate life insurance beneficiaries," Commissioner Michael Consedine said. "We commend AIG's high level of cooperation and initiative in working to resolve this important issue and see that beneficiaries receive claim payments."
Under the terms of the settlement, AIG will use the Social Security Administration's Death Master File on a uniform basis to locate deceased policyholders and make payments to their beneficiaries. Pennsylvania was among the lead states in negotiating this settlement, which also requires AIG to pay a total of $11 million to be shared among those states participating in the settlement agreement.
AIG joins Nationwide, MetLife and Prudential in reaching national agreements through the National Association of Insurance Commissioner's Task Force formed to change the way that life insurance companies handle claims. These companies will now proactively search for deceased policyholders and beneficiaries, and must regularly report their compliance to regulators.
To see a copy of the AIG settlement agreement, visit www.insurance.pa.gov and click on the "consumer protection" tab. Consumers with life insurance questions should call the department's toll free number at 877-881-6388. If an insurance company has been acquired by another, the department can also help beneficiaries track down the new company.
Media contact: Rosanne Placey or Melissa Fox, 717-787-3289
SOURCE Pennsylvania Insurance Department